They have conveniently rewritten history, as Sony only removed OtherOS, BECAUSE Geohot hacked the hypervisor...

Yup.Sony gave the community OtherOS.The community took this and hacked the PS3. So Sony took it away.

Is that really a surprise?

You know a thing or two about playing revisionist history yourself it appears based on that loaded bullshit. Sony didn't "give" anyone anything. They included support for OtherOS, it was a feature. They even marketed it as part of their home computer/entertainment center crap years ago. ONE PERSON made a proof of concept exploit which did not even result in piracy and it could have been patched through software easily. He didn't even manage to fully get through Cell's various security layers, IBM wasn't exactly lax with its TPM system. Sony totally overreacted and removed OtherOS entirely which has resulted in the hacking community actually taking notice now because what was once an "open" system became closed and that goes against their culture. And where did the eventual unsigned application access come from then? Surely an unpatched OtherOS system. No, it was using an exploit involving Sony's own service mode for the system and had nothing to do with OtherOS.

The fact remains that OtherOS was in there for 4 years and only when it was taken away was the system seriously looked at by the hacking community who were all too happy to crack the Wii and 360 long ago. If I found a way to exploit the packing of PSN apps to disguise commercial games I wouldn't expect them to take down PSN but instead patch the fucking problem. They also removed functionality from a bought and paid for system, a big fucking nono which they are still trying to resolve in court. And don't give me the usual song and dance about "how many people used it?!". They sold them the system and it included the functionality whether they used it or not.

Two wrongs don't make a right as Sony is going to find out the hard way now and just when PS3 software sales were finally starting to reach parity with the 360.